8th Apr 2019 10:52
LONDON (Alliance News) - Gold miner KEFI Minerals PLC on Monday said an investor has received higher commitments than planned for its Tulu Kapi project in Ethiopia.
ANS Mining Share Co SC has got USD11.4 million worth of investments, higher than the USD9 million planned.
KEFI said the release of funds to the Tulu Kapi project is expected to occur during the second quarter of 2019.
ANS has a remaining USD38 million earmarked to Tulu Kapi, and this will be subscribed at the close of full development funding, as KEFI has previously planned.
However, of this, one third will now be invested via a KEFI subsidiary so ANS will become KEFI's minority partner in the subsidiary. The rest of the investment will go directly to the Tulu Kapi project.
KEFI Managing Director Harry Anagnostaras-Adams said: "KEFI feels deeply honoured to have the support of pre-eminent Ethiopian partners, the government and ANS, an investment vehicle of leading local financial institutions."
"This complements our focus on ensuring Tulu Kapi Gold Mines is aligned with Ethiopian stakeholders in every possible sense, from community alignment to equity-partnering."
"The commitments into ANS are a material development and should provide KEFI shareholders comfort the proposed asset-level equity financing strategy is progressing as previously planned," he continued.
KEFI shares were 1.5% lower on Monday at a price of 1.62 pence each.
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